Ford Predicts it Will Settle with the UAW Before this Weekend's Deadline

09/12/96

Reuters has reported that Ford Motor Company's Chief Financial Officer John Devine said contract negotiations with the UAW have been characterized by a "positive tone on both sides" of the bargaining table. The union is currently negotiating its next three year contract with the automaker. The current UAW-Big Three contract expires on September 14. Devine said he expected a deal by the deadline, but added that "the issues are still tough and large and a lot of things have to be discussed yet."

The UAW selected Ford to be the lead company in bargaining this term's triennial labor contract a couple of weeks ago. Ford hopes to use its position as lead company to tailor the labor contract to its own needs while addressing the UAW's concerns, Devine said.

"Our first priority is Ford Motor Co. Make something that works for Ford Motor Co. and works for the UAW. That's our clear No. 1 focus," he said. When Devine was asked if the resulting pact also would likely benefit GM and Chrysler, he said, ``They're going to have to worry about that.''

People familiar with the talks have said the UAW seeks a base wage increase of 2 percent per year over the life of the contract, guarantees of specific employment levels, and elimination of a lower starting wage rate for new hires. The two sides are also reportedly discussing extending the typical three year agreement by a year.

High level, "main-table" negotiations to work out final details are expected later this week. Lower-level negotiations with GM and Chrysler have continued.

Paul Dever -- The Auto Channel